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As Greece inches closer to the brink of financial collapse, fear that the debt crisis will spread is engulfing Europe.

As President Luiz Inácio Lula da Silva heads to Tehran this weekend to make what many Western diplomats consider a last-ditch attempt at persuading Iran to temper its nuclear ambitions, officials in Washington have expressed concern that the effort could backfire, helping the Islamic republic to block - or at least delay - the United States and its allies from imposing sanctions.